Glossary
ACoS (Advertising Cost of Sales)
The ratio of ad spend to ad revenue on Amazon. Lower ACoS means more efficient advertising.
Why it matters for Amazon sellers
ACoS is the most common metric sellers use to judge PPC performance. But it only measures efficiency within ad-attributed sales. A 20% ACoS looks great until you realize your total ad spend is 40% of total revenue. ACoS is useful for campaign-level optimization but misleading as a business health metric. That is why TACoS matters more.
How Profasee handles this
Marko tracks ACoS at the campaign and keyword level but optimizes for contribution margin, not just ACoS targets. This prevents the common trap of cutting profitable campaigns because their ACoS looks high in isolation.
Frequently asked questions
What is a good ACoS on Amazon?
It depends on your margins and goals. A 15% ACoS might be great for a high-margin product but unsustainable for a low-margin one. The real question is whether your ad spend generates profitable sales after accounting for all costs — not whether ACoS hits an arbitrary target.
What is the difference between ACoS and TACoS?
ACoS measures ad spend divided by ad revenue (only sales directly attributed to ads). TACoS measures ad spend divided by total revenue (including organic sales). TACoS gives a more accurate picture of how advertising affects your whole business.
Related terms
TACoS (Total Advertising Cost of Sales)
The ratio of total ad spend to total revenue, including organic sales. Measures how advertising affe...
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Amazon PPC
Pay-per-click advertising on Amazon via Sponsored Products, Sponsored Brands, and Sponsored Display ...
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Contribution Margin
Revenue minus all variable costs (COGS, fees, shipping, advertising). The real profit metric for Ama...
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